The WHO yesterday promised Thailand almost US$2 million (Bt69 million) at its 193-member assembly in Geneva.

The one-year deal was signed by WHO director Margaret Chan and Public Health Minister Mongkol na Songkhla.

Similar deals have been struck with developing countries Vietnam, Indonesia, India, Mexico and Brazil.

Disease Control Department director-general Dr Tawatch Suntrajarn told The Nation from Washington, DC that the pilot project sponsored by WHO would enable Thailand to manufacture three vaccines, against seasonal flu, H5N1 and pandemic flu - the last being a mutation of the lethal H5N1 bird-flu virus.

Tawatch is in Washington to talk to US trade representatives on the issue of compulsory licences Thailand has issued for three expensive medications.

Mongkol said during a teleconference interview yesterday that the $1.96-million grant would pay for personnel and manufacturing. The government will pay for a factory.

The grant will come in four instalments. The first of $250,000 is to develop human resources, a second of $900,000 is for manufacturing 10,000 vaccine doses for clinical trials, and a third of $700,000 will be paid when full production is ready. The last $146,000 will be transferred when the GPO receives WHO certification.

WHO wants flu vaccines for use in the event of a pandemic. Experts predict the world is due for such an event at any time, probably triggered by a mutation of the H5N1 virus.

Mongkol said Thailand would provide the WHO with 10 per cent of its production.

The plant will cost Bt1.54 billion and has been approved by both the Cabinet screening committee and the National Economic and Social Development Board.

The Public Health Ministry will table the proposal at Tuesday's Cabinet meeting.

It will ask the government to seek Chinese technology-sharing for the new plant at Kaeng Khoi district in Saraburi.

"This will ensure we have enough vaccine if there is a pandemic," Mongkol said.

In addition to the WHO grant there is more good news, Mongkol said. Sri Lanka wants to buy GPO-manufactured Japanese-encephalitis vaccine and other drugs. Details will be settled when representatives visit Thailand next month.

In his address to the WHO assembly Mongkol explained the country's invoking of compulsory licensing for three expensive, life-saving medications.

He encouraged WHO member states to support developing countries with low gross domestic product in their bid to use flexible trade agreements to import cheaper generic versions of drugs.